Can "Noise" Be Traded?

[OddTrader]

Quote from damir00:

other way 'round: systems with less noise produce less profit because there is less pricing "discrepancy".



a perfectly priced market would be completely untradable. prices would not move at all for long stretches of time - and then gap to somewhere else where they would again not move at all.

See Soros' Reflexivity.

 

[tikipoki]

Quote from ElCubano:

I dont know about tradable ( your meaning of it ) but using the example above had you positioned yourself in the direction of the gap ( up or down ) you would make money ( ie. tradable in my opiinion ) ..... no??? In fact the lack of 'noise' would make it quite easier to trade.....no??

you'd be either right, or not.

in a second, with no liquidity on the way up/down.

thats gambling my friend (unless you have sneaky inside info )

Tiki

 

[nononsense]

If it can be traded profitably, it can't be noise.

 

[ktmexc20]

Quote from nononsense:

If it can be traded profitably, it can't be noise.

Yes quite true. But when that's the case, one river's sand bar is another river's rapids.

 

[ktmexc20]

Quote from ktmexc20:

Yes quite true. But when that's the case, one river's sand bar is another river's rapids.

When we open up our perspective and see around the bend we can make alternative choices at the fork.

 

[damir00]

Quote from ElCubano:

had you positioned yourself in the direction of the gap ( up or down ) you would make money ( ie. tradable in my opiinion ) ..... no???

and how would you take the correct position? charts would look like discontinuous perfectly horizontal lines. when you're on one of those lines - maybe for months - on what basis do you decide whether the next horizontal line will be above or below?

 

[damir00]

Quote from ktmexc20:

one river's sand bar is another river's rapids.

nice visualization!

 

[funky]

Quote from ktmexc20:

I pose this as a question.

Actually my question is... in your opinion to what degree?

why do you want to? for godssake.......u into unnecessary pain?

 

[ktmexc20]

Quote from funky:

why do you want to? for godssake.......u into unnecessary pain?

I guess you might call might call me a new yorker.

 

[funky]

Quote from ktmexc20:

I guess you might call might call me a new yorker.

that explains it! see my quote below...